03 Oct 08 Toyota 0% APR in October 2008 a Halloween Trick or Treat?

Many people might see the 0% APR promotion from Toyota for selected Toyota cars and wonder if the drop of 30% sales in September 2008 compared with last September is the reason and Toyota really gives out additional incentive to sell their cars. Not everyone believes it, at least we do not think so.

Cars are eligible for 0% APR are 2009 Toyota Corolla (0% for 36 months), 2009 Toyota Camry (0% for 36 months), 2008 Toyota RAV4 (0% for 36months), 2008 Toyota Highlander (0% up to 36 moth), FJ Cruiser, 2008 Toyota 4Runner (0% for 36months), 2008 Toyota Sequoia (0% for 60 months), 08 Sienna (0% upto 36 months), 08 Tacoma(0% up to 36 months) and 08 Tundra (0% for 36 months). They look very attractive, but there are somethings need to be considered.

1. 0% APR is only available to people who with highest credit score, while most people do not have that high score.

2. The most important part, according to messages we recieve, all models have cash rebate available but once you choose to get special APR, you lose the cash rebate. 09 Corolla, 09 Camry and 08 RAV4 have $500 (some region may have sliently higehr amount) rebate. Since only a small group of people are eligible for 0%, we use 1.9% for 36 months as example.

For a $18000 2009 Toyota Corolla, 1.9% APR of 36 months is around $526 per month. However, assume you choose to take cash rebate of $500, and finance from your credit union to get $4.9% APR for 36 months, you save around $400. So yes, you do save a little bit of money if you are qualified for it.

However, for SUVs, things become more interesting due to high amount of cash rebate. For example, for Highlander, assuming you finance $32000, it has $1250 rebate (some regions are higher) if you choose not to take special APR, while special APR would save you $1600 in 3 years if you get the APR rate. $1250 in pocket now v.s. $1600 in 3 years? Well, it is your call.
For Sequoia, assuming you finance $35,000 under same condition above for 60 months, you save around $2900 in interest. $3000 in pocket now v.s. $2900 in 5 years. Easy decision huh?

4runner would be even worse as 4runner is only qualified with special APR for 3 years.

Keep in mind that the comparison above does not include the hasssl of arguing the rate with finance department of the car dealer, which gives your the most problems and scams like your rate is not improved after you drive our your car…etc. Besides, some unpublic rebates would not be available if you take special APR, which could save you more money if you finance through with your own bank.

It’s October and Halloween is coming, trick or treat?

Tags: Car Pricing News, Toyota

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